U.S. Labor Department sues fiduciary of ERISA-covered plan sponsored by Twinsburg, Ohio, company

Twinsburg, Ohio – The U.S. Department of Labor has sued the former president and fiduciary to the 401(k) retirement plan of Precision Funding Corp., a mortgage broker, for improperly using plan assets withheld from employees’ pay for the benefit of the company, in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that at various times between 2004 and 2006, Dominic DiFranco caused the company to retain participant contributions intended for the plan or failed to remit contributions in a timely fashion. The department seeks to recover all assets owed to the retirement plan.

“The Labor Department will continue to help workers get their benefits when plan assets are either misused or the plans are abandoned,” said Paul Baumann, director of the Cincinnati Regional Office of the department’s Employee Benefits Security Administration (EBSA), which investigated the case.

The suit was filed in federal district court in Cleveland, Ohio.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach the office at 859.578.4680 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

Solis v. Dominic DiFranco
Civil Action Number 5:09cv02038

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